TECH CHECK
I n a different world, we’d be talking about how dynamic pricing is sweeping the industry and providing a small but much-needed boost to restaurants’ sales and profits. Instead, it looks like the tactic of changing menu prices based on demand may be a case of right place, wrong time. On Tuesday, Juicer, one of the most prominent suppliers of dynamic pricing for restaurants, announced that it is no longer offering the product, in part because the prospect of real-time price fluctuations has become too unpopular. CEO and co-founder Ashwin Kamlani pointed to Wendy’s plan to test dynamic pricing as an unfortunate tipping point for the technology. When the press picked up on the burger chain’s aside on a February earnings call, consumers were outraged. It didn’t help that many outlets reported that Wendy’s was adding “surge pricing” in the drive-thru. The distinction is somewhat academic: Surge pricing implies large price increases at times of peak demand, while dynamic pricing refers to more surgical adjustments throughout the day. Consumers took it as a slap in the face re- TECH CHECK: CONSUMERS ARE TOO ON EDGE RIGHT NOW FOR RESTAURANTS TO MESS WITH PRICING. IT’S A SHAME, BECAUSE THE INDUSTRY COULD USE THE BOOST. BY JOE GUSZKOWSKI DYNAMIC PRICING IS A CASE OF RIGHT PLACE, WRONG TIME
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RESTAURANT BUSINESS OCTOBER 2024
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